SELECTIVE EN-BLOC REDEVELOPMENT SCHEME

Dr Kanwaljit Soin asked the Minister for National Development (a) how many retirees and elderly persons are owners of 3-room flats with no constant source of income and who will be affected by the proposed new Selective En-bloc Redevelopment Scheme in Boon Tiong area and (b) if he will give an assurance that in carrying out this proposed scheme, these persons will not be inconvenienced or have to pay any cash to be housed in new equivalent premises in the same area.

Mr Lim Hng Kiang: The Selective En-bloc Redevelopment Scheme, or SERS, will involve a total of 384 units in Boon Tiong. Of these units, about one-third are owned by lessees above 60 years of age.

HDB does not keep records of the current employment nor sources of income or employment of these lessees. However, HDB does not anticipate any affordability problems. Under SERS, lessees are compensated for their old flat and given assured allocation of a new one. Those who are eligible to buy flats direct from HDB will also get a 20% discount (up to a maximum of $30,000) off the price of the new flat. Finally, the lessees will also be able to sell the entire package to eligible third parties, who are likely to pay the lessees a price premium for the assured allocation and the discounted price.

The Boon Tiong site comprises both 3- and 4-room units. However, HDB will not be building new 3-room flats. Depending on the flat-size they choose, 4-room lessees will either reap financial gains from the scheme, or else pay a small amount to move to a new 4-room flat. 3-room lessees will need to pay an amount to buy a new four-room flat. But if they do not want to do so, they can sell their package of benefits, buy a resale 3-room flat and keep the financial gains. In other words, whatever their current financial status, there is always a way for a lessee to move to another home without any additional outlay.

The redevelopment of Boon Tiong will be carried out in three phases to minimize disruption. Residents will not be required to move out of their flats during the construction period. They will only move when their new flats are ready for occupation. HDB will continue to take all the necessary measures to minimize the inconvenience caused to the residents.